Midday Commentary: SolarCity poised as shares gain; Auxilium 'up small'; Allegheny down outright

By Rebecca Melvin

New York, Jan. 6 - U.S. convertibles saw a modest amount of trading early Monday as the market continues to crank toward full speed following the holiday slowdown.

"It's pretty quiet so far," a New York-based trader said.

SolarCity Corp.'s 2.75% convertibles due 2018 traded at 129.7 with the underlying shares of the San Mateo, Calif.-based distributed energy provider's shares surging to a new high after Goldman Sachs added the company's shares to its conviction buy list.

With the SolarCity bonds at 129.7, the shares were at about $64.00. On Dec. 10, the SolarCity convertibles were seen at 113 bid, 114 offered with the underlying shares at $51.50.

Auxilium Pharmaceuticals Inc.'s 1.5% convertible due 2018 was a name on the Trace tape, printing at 110.4 with the underlying shares of the Malvern, Pa.-based specialty pharmaceutical company little changed at $20.18.

They were "up small," a Connecticut-based trader said, quoting the paper at 110 bid, 110.5 offered, with the underlying shares at $20.15.

Allegheny Technologies Inc.'s 4.25% convertibles traded down about 2 points on an outright basis at 102.5 with the underlying shares of the Pittsburgh-based specialty metals company down about 1% at $35.05.

The issue is somewhat weaker than in was toward the end of last year versus the underlying stock.

Also in focus was Nvidia Corp., which saw a block trade that was essentially unchanged at 101.875 bid, 102.125 offered, the Connecticut-based trader said.

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